UPDATE: Bank Of America Reiterates On QuinStreet On Market Pains

In a report published Wednesday, Bank of America analyst Nat Schindler reiterated an Underperform rating on

, but lowered the price target from $5.00 to $4.50. In the report, Bank of America noted, “QuinStreet reported 4QFY14 revenue/EBITDA of $68mn/1.8mn in-line on revenue but below on EBITDA estimates of $68mn/$5.7mn as gross margins fell 390bps in 4Q. Education declined 18% y/y, financial services declined 13% y/y, while other services grew 16% y/y on strength in B2B technology and home services client verticals. Adj. EBITDA margins declined 610bps as QNST spent on marketing.” QuinStreet closed on Tuesday at $4.99.